Wanting to boost your income portfolio with some ASX 200 dividend shares?
If you are, then you might want to check out the two listed below that Goldman Sachs rates as buys.
Here's what the broker is saying about these shares:
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Suncorp Group Ltd (ASX: SUN)
The first ASX 200 dividend share that Goldman Sachs rates as a buy is Suncorp.
It is one of Australia's leading insurance companies with a portfolio of brands including AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous, Suncorp.
Goldman Sachs likes the company due to favourable trading conditions in the general insurance market. It commented:
We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.
As for those all-important dividends, the broker is forecasting fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $13.81, this will mean yields of 5.4% and 5.8%, respectively.
Goldman Sachs has a buy rating and a $15.13 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX 200 dividend share that Goldman Sachs is positive on is the nation's largest telecommunications company, Telstra.
Goldman likes the company due to its low-risk earnings and dividend growth outlook. It explains:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn
In respect to dividends, Goldman is forecasting fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $3.97, this will mean yields of 4.5% and 4.8%, respectively, for investors.
Goldman currently has a buy rating and a $4.70 price target on Telstra's shares.
